ClarkHoward.com - Peer-to-peer lenders
DentBetty.com - Repair estimates by digital photograph

The numbers of people going bankrupt in 2009 will likely be the second-highest total ever. With the recession and unemployment, nearly 130,000 families filed for bankruptcy just last month.

Very often on Clark Stinks, we'll get posters who express that the consumer champ shouldn't have any kind word to say about people who file for bankruptcy. Sure, some people contemplate going into bankruptcy like they're ordering a pizza. But for most it is a devastating life decision.

What's at the root of the bankruptcy trend? The easy answer is that it's a side-effect of the recession and unemployment. But so many who are facing a problem are doing so because they went into the recession with a large amount of debt at the time that they lost their job or had hours cut back.

Barron's reports that the debt level of the average American household stayed steady at 60% of personal income for decades, all the way through 1985. But today, Americans carry a debt-to-income ratio of 130%.

Slicing the same data another way, Barron's estimates that Americans used to carry debt equal to 20% of the nation's output of goods and services. Today, that figure is 100% -- five times the level of debt relative to the size of the economy.

Interestingly, the amount of monthly spending used to service debt is not up dramatically because of lower interest rates. Even so, it's still a 40% larger monthly "carry" (that is, what it takes just to service the debt) than a few short years ago.

The tie-in between people going bankrupt and the debt levels that exist in their lives is so concrete.

Clark despises debt because it puts you in a weakened position. Of course, some debt is the result of people getting hit with catastrophic illness or divorce. Mostly, however, it sneaks up on you with a little bit here and a little bit there to create a huge problem.

Let's face it, life is messy and you need financial breathing room. Think about that the next time you buy something you don't have the cash for. The consequences can be ugly.

Half of all children aged 12 and up now have a cell phone, according to global connectivity research outfit Yankee Group.

That means parents have to be especially wary of what are being termed "off deck" deals. That's where the cell phone provider partners with marketers who offer supposedly free ringtones, jokes of the day and other services.

A recent article in The New York Times reported one consumer had a child who responded for a free joke of the day that cost $20!

The cell providers split the money in half with the marketers. Cell providers particularly love those $9.99 add-a-phone offers for kids because the parent accepts responsibility for any charges that are incurred.

It's incumbent on you to teach your kids that they are not to respond to any "free" offers that are being pitched on the cell phone.

If you get hit with "off deck" charges, call up your cell phone company and tell them to remove the charge. Explain that you know they're in cahoots with the marketer.

Our own executive producer Christa got taken in one of these rip-offs. But it was Clark who gets the monthly bill for her cell phone! It took the consumer champ 3 months of bills and calls during each of those months before he finally got the cell phone company to behave.

In addition, be sure to read through your cell bill page by page. Don't get taken advantage of because of how confusing the bills can be.

Meanwhile, The New York Times also reports that some cell providers offer a $60/year service where they agree not to rip you off with all these "off deck" charges. Why should you have to pay a fee to prevent a company from ripping you off as a customer?! That's outrageous.

Peer-to-peer lending is re-emerging in the marketplace after a rough patch. This is a great way for people to lend to each other online without bank interference.

Prosper.com was one of the earliest P2P lenders to gain traction. But they didn't initially screen their borrowers well enough and a lot of loans went bust as a result. Then the government stymied them briefly over a misunderstanding about securities.

But now Prosper is back in action with a relatively low default rate of 5% among borrowers, according to Barron's. This service and its competitors are now putting people through their paces to weed out the baddies. The company claims 850,000 members and just a little under $200 million in loans underwriting at this date.

Lending Club has a 3% default rate, meanwhile, and turns down 90% of potential borrowers in an effort to cull the herd and find the most credit worthy.

That, of course, begs the question: Who would anyone go the P2P route if you're credit worthy? Generally, you can get a better deal with a P2P lender vs. a bank. Yet it's roughly equivalent to the kind of deal you'd get at a credit union.

For you as a lender, P2P lending allows you to slice up your money to limit risk. So if you want to put $1,000 in the game, you lend $100 here, $200 there and on and on.

The returns you might get as a lender can be enticing. Prosper claims the average lender earns 7% on their money, net after expenses and charge-offs. But those who are really into this virtual underwriting boast that they can make a 12% return.

Entrepreneurs most often get the courage to start their own business during a down economic time. Several giants of Silicon Valley were launched during the recession of the early 1970s because the techies were out of work.

That same cycle is almost certainly repeating itself now. Those people who "coulda, woulda, shoulda" been entrepreneurs are unemployed now and are finally going for it.

Clark read an inspiring story in The New York Times about an entrepreneur named Andrew Mann who was sitting on his front steps contemplating a dent in his car.

That's when the inspiration for DentBetty.com hit. This service, which is only available in select areas, allows you to upload a digital photo of your dents and have local auto body shops bid on the job.

It's an ingenious idea because the pricing at body shops is dynamic based on the volume of jobs they have during any given week.

Will DentBetty work? Who knows! Clark is just captivated by the way inspiration strikes entrepreneurs at such unusual times. There are so many great ideas out there. Some will be hits, some will be misses. Is there an entrepreneurial idea in you?